Well actually it is more like 3% since the commision is split between realotrs. Also you have to pay for the MLS listing fees, brokerage fees and marketing fees. So each guy makes less than 1.1 million on the deal. Then they get hit at a higher tax rate since they are self employed. So prabably get taxed around the 30% range give or take. Still not bad. The issue arises in the bad market, finding someone who can afford this. Also lots of listing agents are cutting the commission rates to be more aggressive in getting sellers.
